New York City-based ad network 24/7 Media will take nearly a 20 percent
equity Stake in Seattle-based TechWave Inc. and is entering an exclusive
co-marketing agreement with the e-commerce company.
24/7 Media will promote TechWave’s full-service e-commerce enabling services
to its more than 2,600 24/7 Network and ContentZone affiliates, and TechWave
will promote 24/7 Media’s advertising sales representation and e-mail
management services to its more than 20,000 ShopNow shopping network
affiliates.
The companies will also make a mutual investment in each other, with 24/7
Media acquiring a 19.8 percent equity stake in TechWave in exchange for a
combination of 24/7 Media common stock and cash. 24/7 stock closed Tuesday at
66.
The companies said they will develop a co-branded suite of advertising,
direct marketing, and e-commerce technologies and services. Both companies
will share in the resulting revenues.
TechWave’s ShopNow network members will receive incentive to join 24/7
Media’s advertising network while 24/7 Media’s advertising network affiliates
will receive incentives to establish online store-fronts and join the ShopNow Internet shopping network. In
addition, TechWave committed to an advertising schedule over the next three
years to run on The 24/7 Network. Spending on the campaign was not disclosed.
The companies plan to roll out a program that enables consumers to make
purchases within online advertising banners, thereby making banner
advertisements the actual point-of-sale.
“Our exclusive, strategic relationship with 24/7 Media will provide thousands
of e-commerce Web sites access to extensive Internet media and services,”
said Dwayne Walker, president and chief executive officer of TechWave. “The
combination of 24/7 Media’s reach and targeting with TechWave’s direct
marketing services and technology will create a highly effective alliance and
will immediately yield incredible benefits for millions of Internet buyers
and sellers.”
“TechWave’s technology, direct marketing services and shopping platform
provide complete commerce solutions and online retailing capabilities that
perfectly complement our Internet media services,” said David J. Moore, CEO
of 24/7 Media. “This partnership will give our affiliates access to the
premier e-commerce enabling technologies and services.”
